Housing market on slow road to recovery

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By Gerry Tuoti

southcoasttoday.com

By Gerry Tuoti

Posted Jun. 21, 2014 at 12:01 AM

By Gerry Tuoti
Posted Jun. 21, 2014 at 12:01 AM

» Social News

After taking a significant hit during the economic recession, the housing market has significantly improved and stabilized across the state, although some regions aren't doing as well as others, analysts say.

"In Eastern Massachusetts we have a strong housing market, particularly in Greater Boston," said Aaron Gornstein, undersecretary of the state Office of Housing and Economic Development. "Because of low inventory, we actually have bidding wars going on in some communities. Other parts of states haven't enjoyed the same economic success. We want to help those communities as well."

In 30 Massachusetts communities, median single-family home sales prices have risen higher than they were in 2005, the peak before the economic recession, according to information released by the Warren Group, which publishes Banker & Tradesman.

The prices in most cities and town, however, are still well below the 2005 peak, despite making significant gains over the past few years.

"The crash in the real estate market was terrible," said Tim Warren, CEO of the Warren Group. "It lasted six or seven years in this state. Virtually each year was worse than the one before. We're in the third year of the recovery now. The recovery has been strong, very strong in some areas."

Median sales prices for single-family homes in Massachusetts have risen for 19 straight months, registering at $315,000 in April, according to the Warren Group's monthly housing report.

BY THE NUMBERS (APRIL)

Westport - 2013:

Houses Sold in April: 7

Sales, Year to Date: 26

Median Sale Price: $365,000

Year to Date Median Price: $357,500

Westport - 2014:

Houses Sold in April: 8 (+14.29%)

Sales, Year to Date: 20 (-23.08%)

Median Sale Price: $298,427 (-18.24%)

Year to Date Median Price: $283,427 (-20.72%)

Dartmouth - 2013

Houses Sold in April: 13

Sales, Year to Date: 59

Median Sale Price: $258,900

Year to Date Median Price: $245,000

Dartmouth - 2014

Houses Sold in April: 14 (+7.69%)

Sales, Year to Date: 52 (-11.86%)

Median Sale Price: $251,500 (-2.86%)

Year to Date Median Price: $259,950 (+6.10%)

"In general, we've seen an increase in home prices across the state€¦" Gornstein said. "It's a much more stable housing marker across the state. There's been a significant decrease in foreclosures over the past two years."

He added that there was a slight uptick in foreclosure petitions last month, a sign that the journey to recovery is not finished.

The market is generally the most robust in communities with the greatest access to jobs, particularly in Greater Boston and along Route 128, Warren said.

The Patrick administration declared the week of June 8 Massachusetts Housing Week and promoted state initiatives aimed at increasing affordable housing stock, boosting home ownership and reducing foreclosures.

In November 2012, Massachusetts announced a goal of creating 10,000 new multifamily housing units per year through 2020, an effort intended to increase access to affordable housing and boost inventory, particularly in urban areas.

Gornstein also said the state is committed to providing assistance to first-time home buyers.

"It's certainly a big challenge for younger families to afford a home in Massachusetts," he said. "We don't want to lose those talented people coming out of the universities to other states€¦ The housing market and housing initiatives are critical to our overall economic success in Massachusetts."

— Gerry Tuoti is the Regional Newsbank Editor for GateHouse Media New England. Email him at gtuoti@wickedlocal.com or call him at (508) 967-3137.